Everyone feels a money crunch from time to time, but if that crunch has gotten bad enough that you’ve considered bankruptcy, think about consolidating or counseling services first.

In the U.S. you are free to seek help from a debt counseling service or consumer credit company. Many of these are nonprofit, so their fees are relatively low, and your credit will look a lot better for the effort than it would if you had filed bankruptcy.

In the U.K., you have the option of applying for an IVA, or Individual Voluntary Arrangement. This can help to reduce your debt by 70% or more.

As with all financial decisions, please consult a professional before committing to any action. They know the laws and regulations in your area and will be able to point you in the right direction.

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